While British travellers are gloomily resigned to the falling spending power of the pound abroad, foreign currency providers are battling to win their business this summer.

Raphaels Bank - trading to consumers as ICE (International Currency Exchange) - has installed its first ever triple-currency dispensing ATMs at Edinburgh, Birmingham and Manchester airports. The machines are all commission free and promise easy access to Sterling, Euros and US dollars.

There are four Raphaels ATMS at Manchester Airport, plus others at the Eurostar stations of St Pancras and Ebbsfleet. All accept LINK, Visa, MasterCard and Amex cards. Raphaels ATMs are at other regional airports, including Southampton, Luton, Norwich and Exeter, and more may appear - including in Scotland - depending on demand.

Traditionally, buying foreign currency at airports has been a pricey option because exchange rates there tend to be poorer than those online and in the High Street.

Smith says withdrawing £500 in foreign cash at one of Raphael's airport ATMs would cost six per cent plus a £3.50 fee - a total of £33.50. A better-prepared traveller using his company's online overnight ordering service would save £20 of that fee by having the money delivered to their home.

Tesco launched Euros-only ATMs in 2007 but other rivals soon joined the market - not least because ATMs handling foreign cash are potentially much more profitable than the 60,000 ATMs that only dispense sterling.

Marks & Spencer has opened 21 at existing stores so far this year, with another 20 opening during the summer.

Its service is commission-free, and because it is treated as a retail purchase rather than a cash advance, holders of M&S store and credit cards can enjoy up to 55 days interest-free credit on withdrawals.

Last week the Post Office, by far the biggest provider of overseas currency, began trialling ATMs at 13 branches.

These will enable customers to collect commission-free Euros or dollars on their debit or credit cards, with a similar exchange rate as it pays across the counter. The Post Office says that UK holidaymakers, who took a staggering £7. 1billion from overseas cash machines in 2007, could make significant savings by collecting the money in the UK.

Helen Warburton, head of Post Office travel services, says: "Holidaymakers can make real savings by avoiding all the charges and commission associated with using overseas cash machines abroad."

Cash withdrawals using credit cards at ATMs abroad will incur interest from day one, while the majority of debit card withdrawals attract a foreign loading charge of up to three per cent.

Travellers can also trim travel costs with Abbey's new Zero credit card - which waives both Abbey's usual foreign exchange fee of 2.75 per cent, along with standard fees on balance transfers and cash advances. The card claims to be the first to abolish all three fees in one hit.

If ATMs carve out a larger share of the foreign exchange market, prepaid cards appear to be the safest way of ensuring a good exchange rate.

Stephen Heath, at FairFX card (which launched in November 2007 and is marketed through the retailer Matalan and online), said: "Most customers putting standard bank cards into airport ATMs will get the airport rate. With us you always get the rate at which the card was pre-loaded."

Budget and independent travel specialist STA Travel has also launched a branded prepaid cash card to help young people manage money more efficiently on their travels.